Delta Air Lines sees strong travel demand this month and expects to grow revenue by 15-20% next year, according to its latest financial update Wednesday.
Atlanta-based Delta has been focusing on rebuilding its operation, after cutting flights and slashing headcount through early retirements and buyouts during the COVID-19 pandemic. This year, it expects to post about $45.5 billion in revenue.
Even amid an uncertain economic environment, it plans to grow revenue next year by fully restoring its flight schedule to pre-pandemic levels by next summer.
“Demand for air travel remains robust as we exit the year,” said Delta CEO Ed Bastian in a written statement. In 2022, “we navigated challenges while continuing to strengthen our competitive advantages,” he said.
The company is one year into a three-year recovery plan, with expectations for an operating margin of 11% this quarter.
High air fares this year have driven up the cost of travel for consumers, while generating profits for airlines. Next year, Delta expects to nearly double its adjusted earnings per share to $5-$6 per share.
Delta is also working to gradually rebuild its financial strength after taking on billions of dollars in debt during the pandemic.
The airline had adjusted net debt of $20.5 billion as of Sept. 30 — double the debt it had in 2019 before the pandemic — and said earlier this year it aims to get down to $15 billion in adjusted net debt by 2024.
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